Business at a glance
Judge: California casino to remain closed
FRESNO, Calif. – A casino at the center of a tribe’s internal power struggle will remain closed until rival factions that operate it can settle their differences that recently erupted into an armed confrontation, a federal judge ruled Wednesday.
U.S. District Judge Lawrence J. O’Neill said that tensions remain high at the Chukchansi Gold Resort & Casino, prompting him to keep the doors closed, while admonishing tribal leaders for lacking leadership at the expense of hundreds of employees now without paychecks.
On Oct. 10, the attorney general and the National Indian Gaming Commission shut down the casino in Coarsegold, about 50 miles northeast of Fresno, after an armed faction stormed it, sending hundreds of gamblers running with chips still on the tables.
“The explosive keg that was present emotionally the day before the incident is present now,” O’Neill said in court before issuing his written ruling.
WellPoint tops third quarter profit forecasts
INDIANAPOLIS – WellPoint Inc. (WLP) on Wednesday reported third-quarter net income of $630.9 million.
On a per-share basis, the Indianapolis-based company said it had net income of $2.22. Earnings, adjusted for one-time gains and costs, came to $2.36 per share.
The results beat Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $2.28 per share.
The health insurer posted revenue of $18.37 billion in the period, which missed Street forecasts. Analysts expected $18.69 billion, according to Zacks.
WellPoint expects full-year earnings in the range of $8.75 to $8.85 per share.
WellPoint shares have risen 30 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed slightly more than 7 percent. The stock has climbed 42 percent in the last 12 months.
Fiat Chrysler to spin off luxury brand Ferrari
MILAN – Fiat Chrysler Automobiles announced Wednesday it will spin off sports car maker Ferrari into a separate company, a move to unlock the luxury brand’s value and distinguish it from its mass-market parent.
The spinoff aims to raise money to support the newly merged carmaker’s plans to invest 48 billion euros ($61 billion) over five years to compete with global giants Toyota and Volkswagen. Shares in Fiat Chrysler soared on the news.
“I think we are doing the right thing by giving Ferrari a proper, unique place in the capital markets to be evaluated and valued as a luxury automaker,” Marchionne told an analyst conference call.
Fiat Chrysler, which owns 90 percent of Ferrari, will sell 10 percent of its shares in a public offering, and distribute the remaining 90 percent of its holding to its own shareholders.
Local financial stocks unchanged
First Niles Financial stocks remained unchanged to close at $9.25 a share in trading on Wednesday. Cortland Bancorp also stood pat, closing at $15.20 a share.